Microvast Shareholders Face September Deadline in Securities Class Action

The lawsuit, filed in the United States District Court for the Southern District of Texas, centers on allegations that Microvast misled shareholders regarding its operational health. Plaintiffs contend the company overstated its ability to maintain high margins while failing to disclose significant delays in EMEA customer platform rollouts. These operational hurdles culminated in a Q4 2025 gross margin of just 1.0%, a sharp drop from the 36.6% reported in the same quarter of the previous year.

Financial strain intensified when the company recorded a $32.5 million inventory impairment charge related to specialized ESS components that failed to generate expected revenue. According to the complaint, these issues contradicted earlier guidance provided to investors. When the company finally disclosed the revenue shortfall and impairment on March 17, 2026, the share price plummeted from its previous levels to $1.52. Levi & Korsinsky, LLP is currently representing the class, noting that potential recovery eligibility depends on purchase dates within the specified period rather than current share ownership.